Putting your foot down for selling Fjord1 – Bergens Tidende

Competition Authority believes Torghatten buying stakes in Fjord1 will lead to significant limitations in the ferry competition. Konsernsef in Torghatten ASA is disappointed.

– We are disappointed, but have no other comments than that, says CEO of Torghatten ASA, Brynjar Forbergskog.

Surprised

the county council of Sogn og Fjordane is the majority shareholder in Fjord1. Last November, they decided by a narrow majority to sell their shares in Fjord 1 to Torghatten.

There are those not allowed.

county mayor in New Jersey says to NRK that she thought the Competition Authority to approve the purchase, but that they had resigned herself to get an answer.

– Now we need to sit down and look at the decision that the Competition Authority has made. So we must gather ourselves and find a way forward, she says to NRK.

– I also think the industry generally surprised because they thought that it would be possible with a consolidation from four to three companies, says Følling NRK.

– Vestenlig limitation

in a press release from the Norwegian competition Authority says that the acquisition will lead to a significant restriction of competition in the market for operating ferry service in Norway.

– Ferry These lines are an integral part of the transport infrastructure in Norway. Healthy competition for the operation of these lines is essential to ensure ferry passengers across the country a good deal at the lowest price, says Department Gjermund Nese in the press release.

– Will weaken competition

The Competition Authority has recently announced that they are considering stopping all acquisition .

– This would weaken competition in the ferry market, because there are the two biggest players who joined in a market with few players, said competition director Lars Sørgard to BT.

• Torghatten purchased the shares in Fjord 1 AS last winter. Shortly before the county council of Sogn og Fjordane, with 16 against 15 votes, decided to sell Fjord-1 shares to competitor Torghatten. The sale of the shareholding has been working on since 2013.
• There are NPRA and counties who are principals and demand operation of ferry services in Norway through tenders.
• Following the acquisition has been completed a round of consultations. Among others, the road authorities expressed himself critically in terms of competition in the ferry sector.
• Also veidirektør Terje Moe Gustavsen has stated that sales will mean poorer and more expensive ferry offers, and that state, county and dei travelers must take the consequences.

– Our assessment is that the two companies are close competitors and will face each other in many tenders. Thus, the competition could be significantly hampered, said competition director for BT.

– How can they avoid being close competitors?

– The parties will possibly argue that they are not close competitors. We must return to and consider carefully when they have given their input, said Lars Sørgard.

So far, the only Norwegian actors who have participated in the tender competitions that have been carried out in Norway.

– there is no formal reason why the foreign shipping companies are active in these tender competitions, but we have so far not seen examples of it, explains Lars Sørgard.

NPRA welcomed

NPRA stated a few days ago in Adresseavisen that they are against the merger. They believe it would lead to a significant weakening of competition in the Norwegian ferry market.

– The companies merged, the new merger control in excess of 60 percent of the entire ferry fleet in Norway measured in number of vessels. Such a large and dominant player will be able to get such a powerful and dominant market position that the healthy and normal competition benefit society may be at risk, according to the post.

Have another review

Brynjar Forbergskog, CEO of Torghatten ASA, has previously stated to BT that competition is not impaired.

– We have another consideration in this matter and believes the competition will be maintained. Anything else we do not want to comment, but I want to emphasize that we keep up the dialogue with the audit. We want to find a solution.